If you’re counting on your homeowner’s insurance being sufficient coverage for your Airbnb rental, consider looking for updated coverage immediately. In general, most homeowner’s policies don’t cover short-term rentals. Because it is considered a business activity, your claim could be denied –or worse — your insurer could cancel, or non renew policy. In some states, it’s even illegal to not have adequate rental insurance. To make sure that you are covered, you need a specific Airbnb home insurance policy that covers this type of business transaction. This is sometimes known as commercial insurance coverage. Commercial insurance policies help protect you in the unfortunate event your guest damages property or sues you for an injury they sustained during their stay.
Not All Commercial Insurance Plans Are the Same
While it’s important to have commercial insurance coverage for your property, not all plans are the same. In fact, most commercial insurance plans are expensive due to the commercial nature of the coverage. If you’re only renting out your home for a few days a year, why should you have to maintain an expensive commercial insurance plan? You might not even get the return on investment to justify the cost! Fortunately, there’s a solution – Proper Insurance®. At Proper Insurance, our coverage is specifically made for property owners who rent out their home using Airbnb and similar services. Our coverage replaces your homeowner’s insurance so you don’t have to manage multiple plans at once. And it’s designed to be affordable so you can have the coverage you need without breaking the bank.
The Airbnb Host Guarantee Isn’t Enough
But, what about the free coverage offered by Airbnb? The Airbnb Host Guaranteeprovides listers with up to $1 million in property damage coverage at no additional cost. Sounds great, right? Should someone get hurt while staying on your property, you are not likely going to be covered under the Airbnb Host Guarantee. Liability coverage, one of the crucial pieces of vacation rental insurance coverage, is not included in the Host Guarantee. In addition, numerous exceptions to the policy make it difficult to receive reimbursement for property damage. Plus, if your property is damaged and can’t be rented out, your lost income is not covered by their plan. Airbnb rentals can be a great way to make a side or full-time income but without the right kind of coverage, you place yourself at a serious financial risk. In other words, don’t count on the Airbnb Host Guarantee as your primary means of insurance coverage for your short-term rental.
Are You Prepared for Lost Business Income?
If your property was damaged by a guest and you’re waiting on an insurance claim, you’ll likely be unable to rent out your property until repairs are made. For some property owners, this can lead to some serious financial problems, especially if this is their main source of income. For example, if damaged property prevents you from renting out the property for an entire month, how much revenue will you lose? One great benefit of signing up for commercial Airbnb coverage is that your business income is also insured against a loss!